Useful Links

London landlords see healthy returns on investment

Top-performing areas for returns on investment in property situated in and around the capital

The three top-performing regions for landlord returns on property investments, measured over the last five years, are all in or around London, according to new research.

Inner London and Outer London were rated in the top three areas, followed by other areas close to Greater London.

Both property value appreciation, which is particularly marked across the capital, and increasing demand for rental property, have helped to ensure impressive returns in each of these areas.

Property prices in London have reached new highs over the last few years. Consequent demand for rental accommodation, as increasing numbers of young professionals turn towards the rental market, has helped to generate solid and reliable returns for landlord investors.

Investment in transport and other infrastructure means that more young professionals are now willing to rent properties further from Central London. New cycle superhighways and large-scale projects like Crossrail are set to improve accessibility to many areas, and have made London’s outer regions more attractive to young professionals working in or around the City.

Total landlord holdings across Britain are now worth over £1 trillion, having grown by £171 billion over the last year. There are currently around 5.6 million rental homes across Britain, with rents up by more than a quarter since the beginning of the financial crisis.

Stephen Ludlow, chairman of ludlowthompson, comments: “More and more people have seen the value of investment in rental property. Demand remains incredibly high and with interest rates as low as they are, it is a struggle to secure comparable returns via other kinds of investment.

“Liberalisation of pension rules means more people nearing retirement are considering property investments - they provide a reliable income source.

"The vast range of employment opportunities in the capital has also driven the rise in demand across London, whihc in turn has boosted investor returns."

Demand remains incredibly high and with interest rates as low as they are, it is a struggle to secure comparable returns via other kinds of investment